Quarterly Beverage Tracker First Quarter 2016: Ukraine; Comprehensive Quarterly Analysis of Year on Year Performance for All Commercial Beverages

Consumption of spirits in the internal market continues its steep decline following recent tax increases. In order to support profitability, spirits producers continued to aggressively search for new foreign markets. The import of hot coffee from Russia was banned due to trade rows resulted in decline of the share of instant hot coffee. Production of raw milk in Ukraine continued to decline: in Q1-16 caused prices to grow accordingly.

Key Findings

Ukrainian wine producers, facing dramatic declines of sales in the domestic market and traditional foreign markets are desperately searching for new export destinations.

The situation of dairy industry remains difficult as most dairy producers had increased losses in 2015 and won''t be able to become profitable in 2016.

In Q1-16, hot tea saw its smallest decline since its downturn began in 2014, perhaps due to the economy beginning to reach more favourable conditions for development.

The reduced spending of both businesses and consumers has continued to negatively impact the overall soft drinks market in this quarter.

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